VANCOUVER, British Columbia, Aug. 21, 2026 (GLOBE NEWSWIRE) -- EnWave Corporation (TSX-V:ENW | FSE:E4U) ("EnWave", or the "Company") today reported the Company's consolidated interim financial results for the third quarter ended June 30, 2026.

All values in thousands and denoted in CAD unless otherwise stated.

   -- Reported Q3 2026 revenue of $3,313 an increase of $569 compared to the 
      same period in the prior year. The increase was primarily driven by the 
      sale of a large- scale machine that had been fully fabricated and held in 
      inventory in prior periods and higher royalties. 
 
   -- Reported royalties, excluding exclusivity payments ("Base Royalties"), 
      for Q3 2026 of $536, an increase of $104, or 24% relative to the 
      comparable period in the prior year. Royalties increased due to higher 
      product sales and partner production for the quarter. 
 
   -- Gross margin for the three months ended Q3 2026 was 25% compared to 19% 
      for the three months ended Q3 2025. The increase in margin was primarily 
      attributable to lower fabrication costs resulting from fewer large-scale 
      machines on contract as compared to the prior quarter. 
 
   -- Reported a decrease in Selling, General & Administrative ("SG&A") costs 
      (including Research & Development ("R&D")) of $205 for Q3 2026 relative 
      to the comparable period in the prior year, with the decrease primarily 
      related to lower personnel and third-party commission costs offset by 
      higher professional development fees and tradeshow attendance. 
 
   -- Reported an Adjusted EBITDA(1) loss of $93 for Q3 2026, a $482 
      improvement from the prior year, driven by large-scale equipment sale and 
      lower SG&A expenses, including R&D. 

Consolidated Financial Performance:

 
($ '000s)           Three months ended June 30,     Nine months ended June 30, 
                                         Change                         Change 
                      2026      2025        %       2026      2025           % 
------------------   ------    ------   --------   ------    ------   -------- 
 
Revenues              3,313     2,744     21%       6,072     7,610    (20%) 
Direct costs         (2,501)   (2,209)   (13%)     (4,258)   (5,526)    23% 
------------------   ------    ------   ----       ------    ------   ---- 
   Gross margin         812       535     52%       1,814     2,084    (13%) 
 
Operating expenses 
   General and 
    administration      394       532    (26%)      1,439     1,541     (7%) 
   Sales and 
    marketing           439       485     (9%)      1,452     1,407      3% 
   Research and 
    development         367       388     (5%)      1,254     1,124     12% 
                      1,200     1,405    (15%)      4,145     4,072      2% 
Net loss - 
 continuing 
 operations            (465)   (1,162)    60%      (2,722)   (2,462)   (11%) 
Net (loss) income 
 - discontinued 
 operations               -        (9)   100%          (6)    1,109   (101%) 
Adjusted EBITDA(1) 
 loss                   (93)     (575)    84%      (1,453)   (1,098)   (32%) 
Loss per share: 
   Continuing 
    operations -- 
    basic and 
    diluted         $  0.00   $ (0.01)            $ (0.02)  $ (0.02) 
   Discontinued 
    operations -- 
    basic and 
    diluted         $  0.00   $  0.00             $  0.00   $  0.01 
------------------   ------    ------   --------   ------    ------   -------- 
   Basic and 
    diluted         $  0.00   $ (0.01)            $ (0.02)  $ (0.01) 
------------------   ------    ------   --------   ------    ------   -------- 
 
 
Note: 
(1)  Adjusted EBITDA is a non-IFRS financial measure. Refer 
      to the Non-IFRS Financial Measures disclosure below 
      for a reconciliation to the nearest IFRS equivalent. 
 
 

EnWave's consolidated interim financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca and on the Company's website www.enwave.net

Key Financial Highlights for the Nine Months Ended June 30, 2026 (expressed in 000's)

   -- Reported revenue of $6,072 a decrease of $1,538 relative to the 
      comparable period in the prior year. The decrease was primarily related 
      to fewer machine sales. 
 
   -- Reported Base Royalties of $1,470, an increase of $139 or 10% relative to 
      the comparative period in the prior year. Reported total royalty revenues 
      of $1,628, an increase of $163 or 10% relative to the comparative period 
      in the prior year. Royalties grew due to increased royalty partners, 
      product sales, partner production, and exclusivity payments. 
 
   -- Reported a $73 increase in SG&A costs for the nine months ended June 30, 
      2026, primarily due to higher sales personnel, patent maintenance, legal 
      fees associated with general business activities, and recruitment costs. 
      Prior-year financing-related legal costs were capitalized as part of the 
      transaction. 
 
   -- Reported an Adjusted EBITDA(1) loss of $1,453 for the nine months ended 
      June 30, 2026, a decrease of $355 from the comparable period in the prior 
      year. 

Significant Corporate Accomplishments in Q3 2026 and Subsequently:

   -- Signed an Equipment Purchase Agreement with Procescir S.A. de C.V. for 
      the purchase of second 120kW REV$(TM)$ machine. 
 
   -- Signed a Technology Evaluation and License Option Agreement with Swiss 
      Cannabis Selection AG. 
 
   -- Signed a Technology Evaluation and License Option Agreement with one of 
      the world's largest multinational food companies. 
 
   -- Signed a Commercial Licence Agreement and Equipment Purchase Agreement 
      for a 10kW REV(TM) machine with The Dry Hub ("DryHub"), an Egyptian food 
      processing Company. 
 
   -- Signed a Research and Development License Agreement with Rhizome Food and 
      Farming LLC ("Rhizome"), a North American food Company led by renowned 
      chef Dan Barber. Rhizome acquired a 3.6kW REV(TM) machine for commercial 
      and product development. 
 
   -- Subsequent to the quarter, the Company signed Research and Development 
      License Agreement with the University of Limerick ("Limerick") in 
      Ireland. Limerick acquired a small-scale REV(TM) machine to support 
      research and product development. 

Non-IFRS Financial Measures:

This news release refers to Adjusted EBITDA which is a non-IFRS financial measure. We define Adjusted EBITDA as earnings before deducting amortization and depreciation, stock-based compensation, foreign exchange gain or loss, finance expense or income, income tax expense or recovery, non-recurring income and expenses, restructuring and severance charges, and discontinued operations. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the reconciliation between Adjusted EBITDA and the most comparable IFRS financial measure reported in the Company's consolidated interim financial statements.

 
                          Three months ended       Nine months ended 
                               June 30,                      June 30 
($ '000s)                 2026       2025        2026      2025 
 
Net loss after income 
 tax                        (465)     (1,171)    (2,728)   (1,353) 
    Amortization and 
     depreciation            295         295        878       890 
    Stock-based 
     compensation             76          59        246       330 
    Foreign exchange 
     (gain) loss             (96)        194        (83)       53 
    Finance income           (14)        (26)       (48)     (103) 
    Finance expense          111          65        302       205 
    Non-recurring 
     income                    -           -        (26)      (11) 
    Discontinued 
     operations                -           9          6    (1,109) 
-----------------------  -------   ---------   --------   ------- 
Adjusted EBITDA              (93)       (575)    (1,453)   (1,098) 
-----------------------  -------   ---------   --------   ------- 
 
 

Non-IFRS financial measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to EnWave's management. Accordingly, these non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more information, please refer to the Non-IFRS Financial Measures section in the Company's MD&A available on SEDAR+ www.sedarplus.ca.

About EnWave

EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Delta, BC, EnWave has developed a robust intellectual property portfolio, perfected its Radiant Energy Vacuum (REV(TM)) technology, and transformed an innovative idea into a proven, consistent, and scalable drying solution for the food, pharmaceutical and cannabis industries that vastly outperforms traditional drying methods in efficiency, capacity, product quality, and cost.

With more than fifty partners spanning twenty-four countries and five continents, EnWave's licensed partners are creating profitable, never-before-seen snacks and ingredients, improving the quality and consistency of their existing offerings, running leaner and getting to market faster with the company's patented technology, licensed machinery, and expert guidance.

EnWave's strategy is to sign royalty-bearing commercial licenses with food producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits of producing exciting new products, reaching optimal moisture levels up to seven times faster, and improve product taste, texture, color and nutritional value.